TD Cowen analyst Shaul Eyal reiterated a Buy rating on Zscaler (ZS – Research Report) today and set a price target of $270.00.
Shaul Eyal has given his Buy rating due to a combination of factors including Zscaler’s robust financial performance and strategic positioning in the cybersecurity sector. Zscaler’s recent quarterly results surpassed consensus estimates, showcasing a significant year-over-year revenue increase and strong billings growth. Despite the broader economic headwinds, the company’s ability to maintain a high rate of revenue growth, alongside impressive profitability and cash flow generation, underpins the positive outlook.
The rationale behind the Buy rating also encompasses Zscaler’s successful platform approach, which is resonating with customers and driving increased adoption across its suite of cybersecurity solutions. The company’s record number of new logo additions indicates effective channel investments and a strengthening sales organization. Moreover, Zscaler’s focus on expanding its enterprise customer base, particularly those with annual recurring revenues exceeding $1 million, signals solid up-sell performance and long-term growth potential. Despite a challenging macro environment, the continued strong demand for cybersecurity solutions and Zscaler’s strategic initiatives are key contributors to the optimistic assessment.
Eyal covers the Technology sector, focusing on stocks such as Verint Systems, Okta, and Palo Alto Networks. According to TipRanks, Eyal has an average return of 29.5% and a 70.36% success rate on recommended stocks.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $270.00 price target.
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Zscaler (ZS) Company Description:
Zscaler, Inc., formerly known as SafeChannel Inc., is a cloud-based security solutions provider. The company offers a full range of enterprise network security solutions including internet security, web security, vulnerability management, firewalls, antivirus, and control over user activity in mobile, cloud computing, and Internet of Things environments.
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